Tender Offer Results: USD 459.979 Million of 2027 and 2028 Senior Secured Notes Accepted for Purchase
Tender offer for overseas notes closed.
- 2027 Notes Accepted
- US$299,979,000 with proration factor of 47.8999%
- 2028 Notes Accepted
- US$160,000,000 with proration factor of 37.2733%
- Total Payout
- US$479,069,065.14 on Sept 30, 2026
- 2027 Notes Remaining
- US$450,021,000
- 2028 Notes Remaining
- US$340,000,000
What happened
Shriram Finance had invited holders of two series of its US dollar bonds, issued under its USD 3,500,000,000 Global Medium Term Note Programme, to sell them back for cash. The offer opened on September 21, 2026 and expired on September 28, 2026. The final results are now out.
How much was tendered
- 2027 Notes (6.625%, original size US$750,000,000): holders tendered U.S.$579,421,000, or 77.26 per cent of the outstanding amount.
- 2028 Notes (6.15%, original size US$500,000,000): holders tendered U.S.$352,101,000, or 70.42 per cent of the outstanding amount.
How much was accepted
Since tenders exceeded the caps, the company accepted on a pro-rata basis.
- 2027 Notes accepted: U.S.$299,979,000 with a proration factor of 47.8999 per cent (cap was U.S.$300,000,000).
- 2028 Notes accepted: U.S.$160,000,000 with a proration factor of 37.2733 per cent (cap was U.S.$160,000,000).
Notes not accepted will be unblocked and returned to holders on the payment date. Accepted notes will be retired and cancelled.
What holders receive
- 2027 Notes: purchase price of U.S.$1,000 per U.S.$1,000 principal, plus an additional interest payment of U.S.$11.50 per U.S.$1,000, plus accrued interest.
- 2028 Notes: purchase price of U.S.$1,000 per U.S.$1,000 principal, plus an additional interest payment of U.S.$13.00 per U.S.$1,000, plus accrued interest.
Total expected payout: U.S.$479,069,065.14, with the payment date expected on September 30, 2026.
What remains
After settlement, U.S.$450,021,000 of the 2027 Notes and U.S.$340,000,000 of the 2028 Notes will remain outstanding.
How to read this
This is a liability management exercise: the company is buying back part of its offshore borrowing early using cash. Strong participation shows willingness among bondholders to exit. Equity holders are not directly affected; the impact is on the company's debt profile and interest costs. HSBC and MUFG acted as dealer managers, with Sodali & Co as information and tender agent.
Also from Shriram Finance
Viewer query on Shriram Finance holding at a loss; analyst advised a stop loss amid expected RBI rate hike
6 Oct 2026
Shriram Finance stock fell around 4% as an auto sector lender amid the broader auto selloff
1 Oct 2026
Tender Offer Settled: USD 299.979 Mn of 2027 Notes and USD 160 Mn of 2028 Notes Purchased and Cancelled
1 Oct 2026
More numbers
- 2027 Notes tenderedU.S.$579,421,000
- 2027 Notes tendered share77.26 per cent
- 2028 Notes tenderedU.S.$352,101,000
- 2028 Notes tendered share70.42 per cent
- 2027 Notes acceptedU.S.$ 299,979,000
- 2027 proration factor47.8999 per cent
- 2028 Notes acceptedU.S.$ 160,000,000
- 2028 proration factor37.2733 per cent
- Additional interest, 2027 NotesU.S.$11.50 per U.S.$1,000
- Additional interest, 2028 NotesU.S.$13.00 per U.S.$1,000
- Aggregate considerationU.S.$479,069,065.14
- 2027 Notes remaining outstandingU.S.$450,021,000
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